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Munich Prosecutors Investigate Ex-BayWa Chief Klaus Josef Lutz for Suspected Breach of Trust

The case centers on suspected breach of trust tied to BayWa’s 2023 accounts.

Overview

  • Munich prosecutors confirmed an investigation into former BayWa CEO Klaus Josef Lutz on suspicion of breach of trust.
  • Officials have not disclosed specific allegations or the number of suspects, while regional reports say private premises were searched.
  • The probe relates to scrutiny of the 2023 annual accounts and whether the former leadership understated risks at the heavily indebted group.
  • Lutz notified the Munich and Upper Bavaria chamber of commerce and is relinquishing the presidency, with the IHK stating he will not seek re-election.
  • BayWa says it is cooperating with authorities as it pursues asset sales to repay about €4 billion of debt by 2028 after heavy borrowing and a share price drop of more than 50% over 12 months.